CREDIT CONTROL AS A BUSINESS CRITICAL FUNCTION

This site has been developed by TAK-Outsourcing Ltd who provide credit control and debt colection services to all sizes of business within the UK.  The site has very recently been added and is still under construction - it will be developed over the coming months to give valuable advice covering all areas of credit control.  Our main website, www.tak-outsourcing.com also has a 'useful tools' area which is an excellent source of information. 


With the current economic downturn, the importance of good credit management has been magnified and all companies credit management policies and procedures need to be reviewed and upgraded in order to avoid your company becoming a statistic of the poor economy.


WHAT IS CREDIT CONTROL?

The term “credit control” can be defined as :

Policies aimed at serving the dual purpose of (1) increasing sales revenue by extending credit to customers who are deemed a good credit risk, and (2) minimizing risk of loss from bad debts by restricting or denying credit to customers who are not a good credit risk. Effectiveness of credit control lies in procedures employed for judging a prospect's creditworthiness, rather than in procedures used in extracting the owed money. Also called credit management.